Amidst Rumours of a New Extensive Tax Amnesty, the Tax Authorities Increase the System of tax Payment Facilities

17/05/2016

In a meeting of finance executives last week, Argentine Finance Minister, Alfonso Prat Gay confirmed that there will be a tax amnesty and a voluntary disclosure program before the OECD Common Reporting Standard becomes fully operational. In this context, on May 2, 2016, the Tax Authorities (“Tax Authorities”) enacted General Resolution No. 3870 regarding a “system of tax payment facilities” by means of which the Tax Authorities increased the limit number of plans for tax payment facilities that tax payers can file for. This new limit aims at regularizing the payment of tax and social security debts that taxpayers with an annual income of less than ARS50 million, i.e. small and medium-sized enterprises (“SMEs”), owe to the Tax Authorities. In both cases – tax and social security debts- , affidavits must be filed with AFIP on a monthly basis.

In addition, the Tax Authorities is working on the development of a system of scoring, by means of which the tax authorities will analyse in each case whether that person or company meet the requirements to be a beneficiary of more tax payment facilities and better financial conditions. This system will be implemented in July 2016.

The Tax Authorities ´plan is to award the “exemplary taxpayer”, this is because Tax Authorities will evaluate each taxpayer´s level of compliance when entering the program, and based on that, the taxpayer will be awarded a certain number of plans and the applicable financial conditions. It is worth mentioning that a number of factors that are not yet defined will be taken into account. This will not involve a credit analysis, rather it will refer to the fiscal behaviour of each taxpayer.